Mobeen - evaluating the Eurozone Economic forecasts

Evaluation of economic data forecasts for AQA ‘Mobeen’ case study

Over the last five years or so that I have been teaching Business and Economics, data for key economic performance indicators have been rather dull. Inflation, unemployment and interest rates have each been low and steady, and we have seen little of the ‘boom and bust’ cycle that appears in all the textbooks. It has been difficult to see any realistic economic forecasts actually making that much difference to businesses’ plans.

And so it is with the predictions for Eurozone (you did notice that they are for the Eurozone, didn’t you?) in the AQA Unit 2/3 case study on ‘Mobeen’ for Summer 2008. If these forecasts came to pass, none of them would have that great an influence on the plans for Mobeen.

However - there are a couple of evaluative points that spring to mind. If you actually look at what is going on currently with the UK Pound/Euro exchange rate and with inflation in the costs of meat and wheat, you will see that in reality, Mobeen could be facing some more challenging issues. Of course, the case study will have been written some months back, but you will do yourself no harm if you have a handle on what is really happening.

Two years of pain as CBI forecast lower growth for the UK

Business students don’t really need to know the detailed reasons why the rate of economic growth varies.  However, they should appreciate the longer-term trends in GDP growth rates and understand the main implications for businesses.

So today’s news from the Confederation of British Industry would make really useful reading for any students preparing for AS & A2 business exams in May & June 2008.  The outlook for economic growth in the UK economy is worsening according to their latest forecast.

More evidence of rising raw materials costs affecting profit margins

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A recurring theme of business news stories from the UK and abroad is the impact of rising raw material costs on the profitability of manufacturers.  There was another good example today when food supplier Uniq announced its latest results

Helping Business Students Understand Rising Inflation

A short two-minute news clip on consumer price inflation is a great way of updating our business students on the latest information on inflation.  I really liked this one from Sky News this week.

Supporters count the cost of following a Premiership footie club

How much would you spend to be a loyal supporter of Premiership football club? New research highlights just how much it all costs.